(Kitco News) - Gold prices are posting good gains in midday U.S. trading Thursday. Silver prices are moderately up. A drop in the U.S. dollar index and a dip in U.S. Treasury yields on this day are friendly for the precious metals. August gold was last up $31.90 at $3,353.80. July silver prices were last up $0.295 at $33.45.
The marketplace is still mulling over the news that a three-judge panel from the U.S. Court of International Trade in New York on Wednesday ruled against President Trump’s sweeping “Liberation Day” tariffs. The federal court has nationwide jurisdiction over tariff and trade disputes. The ruling found that Trump exceeded his authority under the International Emergency Economic Powers Act by imposing the tariffs without congressional approval. The Trump administration filed a notice of appeal. Bottom line: A sustained loss for Trump could scramble much of his trade agenda and impact how other countries negotiate with the U.S. Traders and investors will watch this development closely and it will likely remain very fluid.
U.S. stock indexes are slightly higher at midday but have lost earlier solid gains.
The FOMC minutes from Wednesday afternoon contained no major surprises but the Wall Street Journal reported the minutes “strongly suggest the Fed isn’t close to lowering rates anytime soon.” The FOMC minutes indicated higher concerns about stagflation—slower economic growth and higher inflation.
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil futures prices are weaker and trading around $61.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.426%.
Technically, August gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at $3,375.00 and then at last week’s high of $3,395.30. First support is seen at $3,325.00 and then at $3,300.00. Wyckoff's Market Rating: 6.5.
July silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.015. The next downside price objective for the bears is closing prices below solid support at the May low of $31.78. First resistance is seen at $33.75 and then at $34.015. Next support is seen at $33.00 and then at $32.74. Wyckoff's Market Rating: 5.5.
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